Mortgage Borrowers Deleverage

The housing bubble that preceded the last recession left many borrowers overleveraged once the recession struck. However, since the peak of the last business cycle in 2007, consumers have begun to deleverage their balance sheets. This trend is evident in the housing market where consumers have been reducing their exposure to mortgage debt by financing more home purchases with cash and reducing both the loan-to-value ratios and the term to maturity of their mortgage debt.